HYM breaks ground on Portico, advancing Suffolk Downs redevelopment amid tax break conditions

Advocate Staff Report

HYM took a big step forward last week and broke ground for Portico, the second major piece of the Suffolk Downs Redevelopment project. Portico is a luxury, residential 473-unit building with 33,000 feet of retail and restaurant space in the Beachmont Square section of the development. It follows the 475-unit apartment complex Almaya on Salt Street.

Last May, the City Council approved a 15-year tax increment exemption agreement with HYM for Portico. The agreement saves HYM approximately $15 million in local taxes over 15 years and opens the door to an additional $15 million in state financial support.

But the tax break came with conditions. The agreement set a construction start date of November 2025 with a delay penalty that would void the tax agreement if work failed to begin.

Portico is expected to be completed by November 2028. If HYM misses that target, the city can shorten the tax exemption window by two years. The tax break agreement also requires payments to the city when the project reaches different milestones, and mandates 10 percent of project work hours to go to Revere residents.

Revere is counting on revenue from new businesses and thousands of new housing units to pay for the city’s new $493 million high school. Elected officials have continually assured residents that revenue from Suffolk Downs will spare the city the need for a property tax override.

Last year, several city councillors raised concerns about the health of the Suffolk Downs project, saying there was nothing happening on the site. Thomas O’Brien, founding partner and managing director of the HYM Investment Group, met with the City Council to assure them the project was on track, and the groundbreaking, although a couple weeks late, was a cause for celebration for everyone.

The project will ultimately span 16.2 million square feet of development, including 10,000 apartments and condominiums; 5.2 million square feet of life sciences and office space; 450,000 square feet of retail and civic space; and 40 acres of parks and open space.